< Back to previous page

Lloyds shareholders attack remuneration policies

Published on 7 May 2010 under category: legal

A group of shareholders in Lloyds Banking Group have attacked the institution's pay policies and the "obscene" awards offered to executives.

At its annual meeting, around 15 per cent of the bank's private investors rejected its latest remuneration report.

Despite losing £6.3 billion last year, Lloyds offered its senior executives £5 million worth of annual bonuses.

Its chief executive Eric Daniels was awarded a £2 million payout, although he chose to waiver it. However, several other board members did take home sizeable sums.

Banks have insisted that large bonuses are necessary to help them retain the most talented staff.

However, shareholder Alexander Hopkinson Bullock insisted that such payouts are not necessary.

"If an individual's loyalty to an institution is so weak, then they should not be in that institution, because institutions depend on loyalty," he remarked.

Lloyds Banking Group is 41 per cent owned by the government following a sate bailout last year.

If you require advice on Commercial Litigation please call us on +44 (0)20 7831 0101 and ask for Andrew Pena.